Update on 2023 Health Plan Contributions

Dear Colleagues:

Next Monday, we will begin the annual open enrollment process for employee benefit selections for 2023. Ahead of that, I am writing today to provide an update on how the University plans to address rising health care costs, and what you can expect with regard to employee contribution rates (the amount deducted from your paycheck for health coverage) for 2023.

The University is especially mindful of the difficult economic climate right now, and how household budgets are being challenged by inflation’s effect on everyday living, particularly as it relates to housing, food and gas. That is why the University is taking action to limit the impact of health care cost increases on our community members.

Based on the annual algorithm that determines employee contributions, rates were expected to increase this year for some employees well into the double digits. However, after conferring with a selection of deans, faculty, staff and our budget office, the University has made the decision to invest an additional $1 million to offset these rising costs for this year. This action will result in the following:

• Schedule A: Employee contributions toward health care benefits under Schedule A will increase by 4.9% for employee-only coverage and increase by 7.7% for family coverage. This equates to a monthly increase between $7 and $40, depending on plan selection. 
• Schedule B:
  • Eligibility Expansion: The University will significantly expand employee eligibility for Schedule B which has lower employee contribution rates. Moving forward for 2023, those eligible for Schedule B rates will include:
    • Households of one with incomes under $50,000;
    • Households of two with incomes under $70,000;
    • Households of three with incomes under $90,000;
    • Households of four or more with incomes under $110,000.
  • Reduced Rates: The University will also increase its subsidy of employee contribution rates under Schedule B to keep costs as low as possible for our lower income employees. The increase for Schedule B rates will be 3.9% for all plan selections. The monthly employee contribution increase will range from $5 to $16, depending on plan selection.
• For 2023, there will be no increases in deductibles, co-pays and coinsurance for any benefit plan.

In addition to this investment to combat increasing health care costs, the University will take the following actions:

• Part-Time Instructors: Under the leadership of Provost Gretchen Ritter, the University will work with Human Resources (HR) and others to explore ways in the future to support and expand health care coverage for our part-time instructors.
• Faculty and Staff Consultation: At the direction of Chancellor Syverud, beginning in the Spring 2023 semester, HR will work with faculty and staff, and through shared governance structures, including the University Senate, to refine how health care benefits are determined in the future.

I recognize this is a challenging time for many members of our community. We will continue to explore ways to expand and strengthen our benefits in the future, while providing immediate support and relief to our faculty and staff. Please stay tuned for future communications about Open Enrollment and do not hesitate to contact HR Shared Services at 315.443.4042 or hrservice@syr.edu if you have any urgent questions or concerns.

Sincerely,

Andrew R. Gordon
Senior Vice President and Chief Human Resource Officer